The heating system of Iași may fall under the control of one of Romania’s wealthiest individuals. Billionaire Ștefan Vuza, through his company Chimcomplex SA, is the sole bidder in the auction organized by the Iași City Hall for the concession of the system for at least 10 years.
Chimcomplex, the largest chemical producer in the country, recorded a turnover of 1.4 billion RON last year, with a profit of 15.2 million RON and approximately 1,500 employees. In 2022, the financial indicators were even better: 2.2 billion RON in turnover and nearly 270 million RON in profit.
Iași City Hall’s efforts to attract investors: who will take over the city’s heating?
Currently, the submitted bid for the takeover of Iași’s heating system is not public, but it is clear that Chimcomplex is the only bidder, with no other companies showing interest in the Iași City Hall auction. If Vuza’s bid meets all technical requirements, the municipality can sign the concession contract.
Vuza’s fortune: one billion euros
According to the latest Forbes ranking, Ștefan Vuza has an estimated net worth of 4.9 billion RON, placing him sixth among the wealthiest Romanians. In recent public statements, Vuza mentioned that Chimcomplex Borzești has a strategy for future investments, supported by European and PNRR funds, focusing on decarbonization, hydrogen energy utilization, the development of renewable green energy, and production diversification. The company’s plans align with the recent strategy approved by Iași City Hall for modernizing the heating system, emphasizing green energy in the future.
Recently, Chimcomplex announced an investment of 120 million euros for the construction of a chemical products factory, with 73.5 million euros coming from its own funds. For the concession of the Iași heating system, investments of nearly 85 million euros are planned, funded by European funds (70.5 million euros), Iași City Hall (6.7 million euros), and a private operator (6.45 million euros). The contract includes a clause allowing the concession period to be extended by 5 years if the operator covers all or part of the municipal contribution.
The cost of gigacalories will rise by 45%. Businesses and institutions will pay 130% more
Over the past two decades, Ștefan Vuza has gained national prominence through significant acquisitions, including Chimcomplex Borzești (2003) and Oltchim assets (2018). The group of companies he leads includes 18 firms and 27 factories, with an estimated value of 2.2 billion euros, according to a statement made last fall. The group also includes the Iași-based company Iasitex, which has reduced its activity and sold off some assets since 2018.
“I took on the role of ‘alchemist’ to revive Romania’s chemical industry,” said Ștefan Vuza, claiming to have created the strongest industrial group in the country.
The Iași deal is valued at Vuza’s fortune level
As reported by ZDI at the time of the auction’s launch, the value of the Iași heating system concession could exceed one billion euros. This is the maximum estimated amount by Iași City Hall for delegating the activity over a 15-year period, determined by law based on projected revenues for the operator and the value of the concessioned assets.
According to ZDI, for the first 10 years, the estimated turnover for the private operator is 3.1 billion RON, plus the inventory value of the concessioned assets, approximately 650 million RON. A 5-year extension would add an additional value of 1.9 billion RON.
Chirica’s plan to increase gigacalorie prices failed. One vote made the difference
According to the specifications, Iași City Hall estimates that between 2024 and 2027, thermal energy sales will stabilize at 200,000 Gcal/year, and from 2028 to 2035, the quantity is expected to increase to 225,000 Gcal/year. Currently, the price of gigacalories in Iași is based on the 2019 rate, but the City Hall is considering a substantial increase: in the latest Local Council meeting, a project for such a hike was debated but rejected. The executive is likely to revisit the project, which would mean a 45% increase for households and 130% for non-household consumers.
